NSW announces $1 billion fund to support businesses and jobs

27 March 2020, Written by Business News Australia

NSW announces $1 billion fund to support businesses and jobs

The NSW Government has announced a second stimulus package that will direct $1 billion to businesses and the state's most vulnerable residents. 

The fund is targeted at keeping people back in jobs primarily, but struggling businesses are set to benefit from tax cuts and the deferral of specific fees and charges.

For businesses with payrolls over $10 million, payroll tax will be deferred for six months.

Businesses with payrolls under $10 million will receive an additional three-month deferment of payroll tax on top of the three-month waiver already announced in the State's first stimulus package.

NSW will also defer gaming and lotteries tax for clubs, pubs and hotels on the condition that these funds will be used to retain staff.

For businesses with less than 20 employees that lease space from the State Government, rents will be deferred for six months.

The parking space levy has also been deferred for six months.

"These are unprecedented times and if we are to emerge in the best shape possible we need to ensure businesses keep their heads above water and keep employees on the books," says NSW Deputy Premier John Barilaro (pictured).

"We need to do whatever it takes to help businesses stay afloat so that they can hold onto as many jobs as possible as we get through this crisis. We will also be there to support those most vulnerable to ensure no one is left behind."

The $1 billion fund will also be used to create new jobs and retrain new employees. The NSW Government says it is already being used to employ 1,000 new staff at Service NSW.

Additionally, NSW will be allocating $34 million to boost funding to prevent homelessness, $30 million to boost the Energy Accounts Payments Assistance scheme, $10 million to support charities, and $6 million funding for Lifeline's operations in NSW.

The extra $1 billion in funding follows a $2.3 billion package announced last week which included a $700 million boost to health services and $1.6 billion for tax cuts and job creation.

"The NSW Government is leading from the front with a package which complements the stimulus measures delivered by the Commonwealth and RBA," says NSW Treasurer Dominic Perrottet.

"Our expectation is that any relief provided by the NSW Government will be used to contribute to help businesses stay in business and people stay in jobs. It's vital we keep people employed and ensure we have the ability to rebound when things improve."

Updated at 12:15PM AEDT on 27 March 2020.


Author: Business News Australia





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